BRM – April 2018 monthly update

1
Monthly Update
April 2018
BRM NAV
$
0.65
SHARE PRICE
$
0.58
DISCOUNT
10.9
%
as at 31 March 2018
The Australian market fell 4.3% in Australian dollar terms over March trading at levels last seen in October 2017. This
performance helped cement the Australian market’s worst quarter since September 2015 as fears of a trade war between
the United States and China gripped global markets.
In March the US announced steel and aluminium tariffs primarily directed at China to which China responded. The escalating
trade tensions that ensued were enough to cause a second significant market correction this year, with risk appetite falling and
concerns over the risks to global growth rising. As a result, all major global indices finished the month in the red. Australia was
hit harder than most given its close ties to China and the market’s heavy exposure to commodities.
Additionally, the banking sector continues to trade at a deep discount to the market given regulatory concerns and the
backdrop of a cooling property market. The first round of pubic hearings of the Royal Commission into misconduct in the
banking, superannuation and financial services industry commenced in March. While the banks have already come clean on
issues including residential mortgages and credit cards, so far the Royal Commission has not identified anything the market
does not already know.
At a sector level, the worst performers over March were the
telecommunication, financial and material sectors (which includes the
resources companies). No sector was left unscathed, but the best performers
over the period were rates sensitive sectors, including real estate and utilities.
These sectors were supported by a fall in interest rates as investors lost their
appetite for risk and moved into safe haven assets.
Performance
In March the Barramundi portfolio fell 2.9%. This was comfortably ahead of
the S&P/ASX 200 index partially hedged into New Zealand dollars which
tumbled 4.1% for the month.
In volatile times it is often companies with more defensive characteristics that
perform best, and this is exactly what happened in March. AUB Ltd (+10.7%),
Brambles (+5.6%) and Domino’s Pizza (+5.9%) were the biggest contributors
to the Barramundi portfolio performance over the month. While there was
no material new news driving the outperformance of these companies,
AUB, Brambles and Domino’s Pizza are relatively immune from any trade
related weakness and have very stable demand for their products or service.
Investors tend to rotate capital to these safe havens in times of stress.
On the flip side it was technology companies that were the leading decliners
for the Barramundi portfolio for March. This very much reflected global share
price movements. Technology companies came under pressure in the United
States with Facebook’s privacy breaches and Donald Trump’s tweets about
Amazon putting the skids under those previous market darlings. The world
is increasingly connected and weakness in the US translated to falls in two
of our technology investments, Wisetech, a software company (-11.5%) and
Seek (-6.8%), an online jobs board.
A word from the Manager
Fisher Funds has historically charged
Barramundi GST at the standard GST
rate on the provision of investment
services. Last year the IRD confirmed
that the lower GST fund manager
rate could be charged to Barramundi
(and this rate has been applied since
1 August 2017). On 28 March 2018,
Fisher Funds received confirmation
from the IRD that they would receive
a refund for overcharged GST of
$1.2m plus use of money interest of
$0.1m on the provision of investment
services to Barramundi for the eight
year period from 1 August 2009 to 31
July 2017. On receipt in early April,
Fisher Funds passed the refund and
use of money interest to Barramundi.
The refund and use of money interest
receivable from Fisher Funds has
been recognised in the Barramundi
NAV from 28 March 2018 onwards.
GST Update

Frank Jasper
Chief Investment Officer
2
Sector Split
as at 31 March 2018
Key Details
as at 31 March 2018
FUND TYPE
Listed Investment Company
INVESTS IN
Growing Australian companies
LISTING DATE
26 October 2006
FINANCIAL YEAR END
30 June
TYPICAL PORTFOLIO SIZE
25-35 stocks
INVESTMENT CRITERIA
Long-term growth
PERFORMANCE
OBJECTIVE
Long-term growth of capital and
dividends
TAX STATUS
Portfolio Investment Entity (PIE)
MANAGER
Fisher Funds Management
Limited
MANAGEMENT
FEE RATE
1.25% of gross asset value
(reduced by 0.10% for every 1% of
underperformance relative to the
change in the NZ 90 Day Bank Bill
Index with a floor of 0.75%)
PERFORMANCE
BENCHMARK
Changes in the NZ 90 Day Bank
Bill Index + 7%
PERFORMANCE
FEE HURDLE
15% of returns in excess of
benchmark and high water mark
HIGH WATER MARK
$0.54
SHARES ON ISSUE
165m
MARKET CAPITALISATION
$95m
GEARING
None (maximum permitted 20%
of gross asset value)
10
%

FINANCIALS
20
%
12
%

INDUSTRIALS
20
%
CONSUMER
DISCRETIONARY
INFORMATION
TECHNOLOGY
26
%
HEALTHCARE
3
%
REAL ESTATE
The Barramundi portfolio also holds cash.
5
%

MATERIALS
Portfolio changes
During the month we added Xero to the portfolio. With
Xero’s move to a sole listing on the ASX, it now fits within
Barramundi’s fishing pond. We regard Xero as a well-run,
high quality business with a global growth opportunity. It is
an obvious portfolio candidate.
We also used share price weakness to add to the portfolio’s
position in Credit Corp. The combination of a profit result
that underwhelmed some investors when Credit Corp
reported in February and generally weak markets meant
the company’s share price retreated over 15% from recent
highs. In our view Credit Corp’s result was anything but
underwhelming. The only thing the company was “guilty” of
was not raising profit guidance. Investors have got used to
CEO Thomas Beregi beating expectations and setting the
bar even higher. That wasn’t the case this time. There was,
however, something much more interesting in this result in
our view. The company is beginning to gain real traction
in its US business. The US Purchased Debt Ledger market
is 10 times the size of the Australian market. Credit Corp
is now on-track to create a business that is of similar size
to its Australian operation. At this level it would have a US
market share of around 4%. We believe it could readily
grow beyond this providing a significant growth option for
the company over years to come.

3
March’s Biggest Movers in Australian dollar terms
Typically the Barramundi portfolio will be invested 90% or more in equities.
APN OUTDOOR
+11
%
AUB GROUP
+11
%
TECHNOLOGY ONE
+8
%
RIO TINTO
-8
%
WISETECH GLOBAL
-11
%
5 Largest Portfolio Positions as at 31 March 2018
CSL
8
%
SEEK
7
%
CARSALES.COM
6
%
NATIONAL
AUSTRALIA BANK
5
%
COMMONWEALTH
BANK OF AUSTRALIA
5
%
The remaining portfolio is made up of another 24 stocks and cash.
Oct
2006
Oct
2007
Oct
2008
Oct
2009
Oct
2010
Oct
2011
Oct
2012
Oct
2013
Oct
2015
Oct
2016
Oct
2014
Share Price/Total Shareholder Return
$
1.00
$
1.20
$
0.8 0
$
0.60
$
0.40
Share PriceTotal Shareholder Return
$
1.60
$
0.20
$
0.00
$
1.40
Oct
2017
Total Shareholder Return to 31 March 2018
1 Month3 Months1 Year3 Years
(annualised)
Since Inception
(annualised)
Corporate Performance
Total Shareholder Return(1.0%)(2.6%)+2.5%+4.7%+2.8%
Adjusted NAV Return(2.4%)(2.9%)+8.4%+6.2%+3.5%
Manager Performance
Gross Performance Return(2.9%)(2.9%)+10.8%+8.9%+6.8%
Benchmark Index^(4.1%)(4.7%)+2.2%+9.8%+2.4%
Performance to 31 March 2018
^Benchmark Index: S&P/ASX Small Ords Industrial Gross Index until 30 September 2015 & S&P/ASX 200 Index (hedged 70% to NZD) from 1 October 2015
Non-GAAP Financial Information
Barramundi uses non-GAAP measures, including adjusted net asset value, gross performance return and total shareholder return. The rationale for using such non-GAAP measures is as follows:
»adjusted net asset value – the underlying value of the investment portfolio adjusted for capital allocation decisions,
»gross performance return – the Manager’s portfolio performance in terms of stock selection and hedging of currency movements, and
»total shareholder return – the return to an investor who reinvests their dividends, and if in the money, exercises their warrants at warrant maturity date for additional shares.
All references to adjusted net asset value, gross performance return and total shareholder return in this monthly update are to such non-GAAP measures. The calculations applied to non-GAAP measures are
described in the Barramundi Non-GAAP Financial Information Policy. A copy of the policy is available at http://barramundi.co.nz/about-barramundi/barramundi-policies/

Disclaimer: The information in this update has been prepared as at the date noted on the front page. The information has been prepared as a general summary of the matters covered only, and it is by
necessity brief. The information and opinions are based upon sources which are believed to be reliable, but Barramundi Limited and its officers and directors make no representation as to its accuracy
or completeness. The update is not intended to constitute professional or investment advice and should not be relied upon in making any investment decisions. Professional financial advice from
an authorised financial adviser should be taken before making an investment. To the extent that the update contains data relating to the historical performance of Barramundi Limited or its portfolio
companies, please note that fund performance can and will vary and that future results may have no correlation with results historically achieved.
Barramundi Limited
Private Bag 93502, Takapuna, Auckland 0740
Phone: +64 9 489 7074 | Fax: +64 9 489 7139
Email: enquire@barramundi.co.nz | www.barramundi.co.nz
4
Computershare Investor Services Limited
Private Bag 92119, Auckland 1142
Phone: +64 9 488 8777 | Fax: +64 9 488 8787
Email: enquiry@computershare.co.nz | www.computershare.com/nz
About Barramundi
Barramundi is an investment
company listed on the New
Zealand Stock Exchange. The
company gives shareholders
an opportunity to invest
in a diversified portfolio of
between 25 and 35 quality
growing Australian companies
through a single, professionally
managed investment. The aim of
Barramundi is to offer investors
competitive returns through
capital growth and dividends.
Capital Management Strategies
Regular Dividends
»Quarterly distribution policy introduced in
August 2009
»Under this policy, 2% of average NAV is targeted
to be paid to shareholders quarterly
»Dividends paid by Barramundi may include
dividends received, interest income, investment
gains and/or return of capital
»Shareholders who prefer to have increased
capital rather than a regular income stream have
the opportunity to participate in the company’s
dividend reinvestment plan (DRP)
»Shares issued to DRP participants are at a 3%
discount to market price
»Barramundi became a portfolio investment entity
on 1 October 2007. As a result, dividends paid to
New Zealand tax resident shareholders have not
been subject to further tax
Share Buyback Programme
»Barramundi has a buyback programme in place
allowing it (if it elects to do so) to acquire up to 7.4m of
its shares on market in the year to 31 October 2018
»Shares bought back by the company are held as
treasury stock
» Shares held as treasury stock are available to be
re-issued for the dividend reinvestment plan and to pay
performance fees
Warrants
»Warrants put Barramundi in a better position to grow
further, improve liquidity, operate efficiently and pursue
other capital structure initiatives as appropriate
»A warrant is the right, not the obligation, to purchase
an ordinary share in Barramundi at a fixed price on a
fixed date
»There are currently no warrants on issue
Management
Barramundi’s portfolio is managed
by Fisher Funds Management
Limited. Frank Jasper (Chief
Investment Officer), Terry Tolich
(Senior Investment Analyst) and
Delano Gallagher (Investment
Analyst) have prime responsibility
for managing the Barramundi
portfolio. Together they have
significant combined experience
and are very capable of
researching and investing in the
quality Australian companies that
Barramundi targets. Fisher Funds
is based in Takapuna, Auckland.
Board
The Manager has authority
delegated to it from the
Board to invest according to
the Management Agreement
and other written policies.
The Board of Barramundi
comprises independent
directors Alistair Ryan (Chair),
Carol Campbell and Andy
Coupe; and non-independent
director Carmel Fisher.